Questions 1 - Question 2: An open economy consumes three goods only. The following table showsthe prices and the quantities exchanged in 2013 and 2014. The year of 2013 is the base year.2014Quantity exchanged504530Goods123Price$60$28$42Additional information:2013Quantity exchanged805040• Households purchased 60% of good 1, and the remaining shares of good 1 were split equallybetween firms and government.•Firms purchased 40% of good 2 exchanged, and the remaining was purchased by households. Inaddition, 25% of good 2 exchanged were imported goods and they were all bought by households.Good 3 was bought by households, (domestic) government, and foreigners only, and their shares ofpurchases were 25%, 35% and 40% respectively.•Unless otherwise stated, the goods are produced within the economy in this question.Question 1From 2013 to 2014, what was the percentage change in the GDP deflator? Keep your answer to 2decimal places & be sure to show your work.GDP deflator2014 =Percentage change (in % terms):Price$70$30$40$5712.5$52059.75% orx 100 = 109.75↑ by 9.75%Question 2How much does the cost of a consumption basket bought by typical households change from 2013 to2014? Keep your answer to 2 decimal places & be sure to show your work.

GDP (Gross Domestic Product) deflator measures the overall price change in the economy goods and…

Answered: Question 1 From 2013 to 2014, what was…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05 Calculate % change for City A’s total spending from 2010 to 2020 in current dollars. *Results round to the nearest 2 decimal places. Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars. *Results round to the nearest 2 decimal places. Why does % change calculated from constant dollars differ from % change calculated from current dollar? Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar. 2010 per capita spending: 2020 per capita spending: Calculate the compound annual growth rate of per capita spending from 2010 to 2020…
Suppose the output and prices in an economy are given as follows: Output of Year Price of Output of medical Price of medical computers computers care care 2020 10 $100 60 $200 2021 11 $50 70 $400 What is the value of nominal GDP in 2021? (Do not include $ or commas in your answer.) What is the value of real GDP in 2021, measured in base year 2020 prices? What is the value of real GDP in 2020, measured in base year 2021 prices? (Do not include $ or commas in your answer.)
The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars. Billions of Dollars Gross private domestic investment 120 Depreciation 35 Exports 60 Imports 55 Government spending 130 Personal consumption expenditures 325 Indirect business taxes (net of subsidies) 20 Personal taxes 90 Employee compensation 380 Corporate profits and FICA contributions 80 Rental income 25 Net interest 35 Proprietors' income 5 Transfer payments and other income 65 Using the expenditure or income approach, GDP for this country was $ billion. Complete the following table by calculating national income, personal income, and disposable personal income for this country. (Note: Be sure to enter your figures in billions of dollars.) Billions of Dollars National Income Personal Income Disposable Personal Income
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The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Price Year 1 $6 $4 $3 Good Quarts of ice cream Bottles of shampoo Jars of peanut butter Instructions: Enter your answers as a whole number. a. What was the economy's nominal GDP in year 1? $ b. What was its nominal GDP in year 2? 3 1 3 Price Year 2 $6 $4 $3 Quantity of Goods Year 2 5 2 2
need help with this one. Using the data in the table below related to nominal GDP and the chain-weighted price deflators for gross domestic product (e.g., price index for GDP), answer the following questions:
Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks. Suppose the quantities produced and their corresponding prices for 2002 and 2006 are shown in the table: 2002 2006 Product Quantity Price $10 $15 $40 Quantity Price Pizzas Haircuts 100 120 $12 $20 $45 50 45 Backpacks 200 210 Calculate real GDP in 2006 assuming the base year is 2002. Do the same calculation assuming the base year is 2006. Are the calculations different? Why?
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Why do economists include only final goods and services in measuring GDP for a particular year? Why don't they include the value of used goods, i.e. cars, furniture, etc., bought and sold? Define net exports. Explain how US exports and imports each affect domestic production. How are net exports determined? Explain how net exports might be a negative amount. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
When using the income approach to measure GDP, what calculation must be done to convert GDP at factor costs to GDP at market prices? The calculation is ______ to factor costs. A. add a statistical discrepancy B. add indirect taxes less subsidies C. subtract indirect taxes less subsidies D. subtract indirect taxes add subsidies
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